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Berman's Camera Shop has prepared a flexible budget for September and is in the process of interpreting the variances. Fav.denotes a favorable variance and Unfav.
Berman's Camera Shop has prepared a flexible budget for September and is in the process of interpreting the variances. Fav.denotes a favorable variance and Unfav. denotes an unfavorable variance. For Material A: $1,000 Fav. Price variance and $3,000 Unfav. Quantity Variance. For Material B: $500 Unfav. Price variance and $1,500 Fav. Quantity Variance. For Direct labor: $500 Unfav. Rate variance and $2,500 Fav. Efficiency Variance. The most likely explanation of the above variances for Material A is that: higher-quality raw materials were used than were planned the company used a higher-priced supplier Material Aused during September was $2,000 less than expected alower price than expected was paid for Material A
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